SYNERGY VALUATION OF BANK BTPN ACQUISITION ON OTO GROUP

• Main Author: Langit, Sekar
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85891
• Institution: Institut Teknologi Bandung

PT OTO Multiartha and Summit OTO Finance (OTO Group) are a private firms engaging in non-bank financial institution, focusing on multi-financing. As of end 2023, one of Bank BTPN main segment, i.e joint financing disbursement has reached up to 1,138,955 in 2023 compared to 2022 which was only 145,699 (expressed in million). In order to expand its business, the Bank opted to pursue an inorganic growth strategy by acquiring companies that engage in financing activities. To finance the expansion, Bank BTPN had capital increase from Pre-emptive Rights II from right issue. The Bank intends to use right issue fund to expand and invest in business financing companies, including PT Oto Multiartha and PT Summit Oto Finance. Synergies from combined firm including operational and financial synergies. Synergy from the combined firm including operational and financial synergy. The acquisition will create a shared and integrated ecosystem, enabling efficient delivery of services and products to a wider customer base and cross selling opportunity. With a large unbanked population and rising internet penetration, the combined companies can reach untapped financing markets in Indonesia. The value of synergy is Rp 2.1 trillion and exceed the OTO firm’s value by 33%. Therefore, the acquisition of OTO Group by BTPN is categorized as successful. The value come from the calculation of free cash flow of equity to the firm using discounted cash flow valuation method.